Breaking the vicious cycle of high inequality and slow job creation

nasikiliza-breaking-the-vicious-cycle-of-high-inequality-and-slow-job-creation-780x439Growth is picking up in South Africa, and this is good news after two years of declining incomes per capita. Observers are revising their forecasts, and optimists foresee economic growth to exceed 2% in next years. In recent months, several events have indeed improved South Africa’s economic outlook: the smooth transition in power, the authorities’ reaffirmed adherence to principles of good governance and debt stability, and the upward revision in national accounts, revealing higher economic activity in 2017 than previously measured.

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Moving beyond GDP to look at the world through the lens of wealth

STORY HIGHLIGHTS Graph1

  • Global wealth grew significantly over the past two decades with middle-income countries catching up to high-income countries.
  • New World Bank report includes estimates of human capital for the first time. Human capital is the largest component of global wealth, pointing to the need to invest in people.
  • Natural capital makes up nearly half of the wealth in low income countries. More efficient, long-term management of natural resources is key to sustainable development.

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